Moody's affirms MGM

Moody's Investors Service said it affirmed MGM Mirage's corporate family rating at Caa1, probability of default at Caa2, senior unsecured notes at Caa1, (LGD 3, 42%), senior subordinated notes at Caa3 (LGD 5, 85%) and senior secured notes at B1 (LGD 1, 3%). The agency also said it raised the company's speculative grade liquidity rating to SGL-3 from SGL-4.

Mandalay Resort Group's senior unsecured notes also were affirmed at Caa1 (LGD 3, 42%) and senior subordinated notes at Caa3 (LGD 5, 85%).

The outlook remains stable.

The upgrade reflects the modest improvement in MGM's liquidity profile and financial flexibility following the extension of about $4.4 billion of its $5.6 billion credit facility and closing of its $845 million senior secured note offering, Moody's said.

However, MGM still faces significant debt maturities over the next two years, the agency said.

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